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Helping Canadian Companies Achieve Their Global Strategy. October 2011. Story. Jill Inc. is a Canadian company Started locally and now sells across Canada Domestic market saturated and sales have been flat Considering changing business model to include exporting. Jill Inc. Looking to Grow.
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Helping Canadian CompaniesAchieve Their Global Strategy October 2011
Story • Jill Inc. is a Canadian company • Started locally and now sells across Canada • Domestic market saturated and sales have been flat • Considering changing business model to include exporting
Jill Inc. Looking to Grow • Situation: Contract in Mexico • Need: worried about non-payment • Solution: EDC insures single contract • Benefit: Risk of not getting paid covered
EDC Risks Covered Single Buyer Policy Contract Foreign Buyer Exporter
Mexico Sales Growing • Situation: exporting business growing • Need: additional cash • Solution: ARI to free up security under operating line • Benefit: Risks covered and more cash available to grow business
EDC Insurance Frees Up Operating Line Assigned AR Policy Contract Foreign Buyer Canadian Bank Exporter
Company Taking Off in Mexico • Situation: New buyers want financial or performance guarantees • Need: Operating line tied up by guarantees • Solution: EDC backstops performance and financial risk for bank • Benefit: Operating line not tied up by guarantee
EDC EDC Backstops Performance Advise Guarantee Foreign Bank Letter of Credit X Security Security Confirm Contract Foreign Buyer Exporter
EDC Direct Loan to Buyer Contract Foreign Buyer Loan Exporter
Local Manufacturing Facility Needed • Situation: Demand outstripping domestic capacity • Need: Require financing to build new plant • Solution: EDC uses financial network to arrange loan andinsure foreign affiliate’s receivables • Benefit: additional financing to expand business
EDC EDC Arranges Financing Guarantee Foreign Bank Contract Foreign Buyer AR Policy Guarantee Canadian Bank Foreign Subsidiary Exporter
Building on Successful Model • Looking to repeat model in India • Access EDC’s extensive network:banks, government, buyers • Help Jill Inc. build successful marketentrance strategy (new plant, intro tobuyers, market info) • Support business in up to 200 markets
Jill Inc. Today • Manufacturing facilities around the world • EDC support provided every step of the way • Insurance for one contract to full suite of solutions • Jill Inc.’s success is EDC’s success